Daily Key Short Term Technical Levels Tues 17 Oct 2017

FX – USD is testing/below resistances

• EUR/USD – Drifted lower in yesterday (16 Oct) U.S. session and tested the lower limit of the neutrality range at 1.1780. Hourly Stochastic oscillator has reached an extreme oversold level coupled with a bullish divergence signal seen in the hourly RSI oscillator  which may see a short-term rebound as downside momentum starts to wane. Turn bullish above 1.1780/1750 support (61.8% Fibonacci retracement of the recent rally from 06 Oct 2017 low to 12 Oct 2017 high + former minor swing high areas of  04/05 Oct 2017) for a potential push up to retest last Fri, 13 Oct 2017 swing high area at 1.1870.
• GBP/USD -  No change, short-term uptrend from 06 Oct 2017 low remains intact as 1.3245 key  short-term support manages to hold the ground (tested but no hourly close below 1.3245). Maintain bullish bias and tolerate the excess short-term support to 1.3225 for potential push up towards 1.3350/60 resistance(former minor swing low of 28 Sep 2017 + Fibonacci cluster).
• AUD/USD -  Drifted lower in today (17 Oct) early Asian session as latest RBA minutes indicated that policy makers  see no reason to follow other central banks to hike interest rates and timing of interest rate hike dependent on AU economic conditions. Interestingly, this morning slide led to the pair to rest just above yesterday’s tightened key short-term support at 0.7825 with the hourly Stochastic oscillator at an extreme oversold level. No change, maintain bullish bias for a potential upleg to retest last Fri, 13 Oct 2017 high of 0.7897 before targeting the next resistance at 0.7925 (former swing low area of 22 Sep 2017 + descending trendline from 08 Sep 2017 high + Fibonacci cluster).
• NZD/USD – No change, short-term uptrend from 10 Oct 2017 remains intact above key short-term support at 0.7130 for a potential push up towards the next resistance at 0.7240/50 (minor swing high area of 29 Sep 2017 + 50% Fibonacci retracement of the decline from  21 Sep 2017 high to 10 Oct 2017 low).
• USD/JPY – Drifted lower yesterday to print a new marginal low of 111.65 before it staged a push up in the U.S. session to challenge the tightened key short-term resistance at 112.30. No change, maintain bearish bias as long as the 112.30 resistance is not surpassed for another round of potential downleg towards the next supports of 111.50 follow by 111.15/10 (minor swing low of  19 Sep 2017 + 38.2% Fibonacci retracement of the recent rally from 08 Sep 2017 low to 06 Oct 2017 high).

• Gold -  Extension of the short-term uptrend from 06 Oct 2017 low has been invalidated through the break of the 1296 support. Risk of corrective decline to retrace the up move from 06 Oct 2017 low to yesterday (16 Oct) high of 1306.3 towards the 1285/1283 support (minor swing low of 12 Oct 2017 + 50% Fibonacci retracement of the recent rally from 06 Oct 2017 low to 16 Oct 2017 high). Key short-term resistance will be at 1298.
• WTI Crude (Nov 2017) – No change, maintain bullish bias  above 51.35/22 key short-term support (former minor swing high of 05/11 Oct 2017) for a further potential push up to retest the 52.75 resistance(swing high area of 28 Sep 2017).

Stock Indices (CFD) – Still holding above supports

• US SP 500 – Continued to inch high as expected and printed another fresh new all-time high of 2559. No change, maintain bullish bias above a tightened key short-term support now at 2552 (yesterday, 16 Oct U.S. session low + minor ascending trendline from 10 Oct 2017 low +  38.2% Fibonacci retracement of the on-going rally from 10 Oct 2017 low) with next resistance coming in at  2565/70 (Fibonacci projection cluster).
• Japan 225 – No change, short-term uptrend from 27 Sep 2017 low remains intact above the 21180 key short-term support as per defined yesterday. Next intermediate resistance coming at 21500/630 (Fibonacci projection cluster).
• Hong Kong 50 – No change, short-term uptrend from 28 Sep 2017 low remains intact above the 28500 key  short-term support as per defined yesterday. Next intermediate resistance coming in at 29100 (Fibonacci projection cluster).
• Australia 200 – Rise in progress as expected and coming close to the short-term resistance/target of 5905 (upper boundary of the minor ascending channel from 05 Oct 2017 low). Hourly Stochastic oscillator is coming close to an extreme overbought level as well. Prefer to turn neutral between 5905 and 5823 (lower boundary of the aforementioned minor ascending channel).
• Germany 30 –  Tested the 12980 support but no hourly close below it. Maintain bullish bias above 12980 key short-term support as per defined yesterday for a potential upleg to target the next resistances at 13080 (1.618 Fibonacci projection from 04 Oct 2017 minor swing low) follow by 13150 next (Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform

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